P&O Profits Flying High

Thursday, March 16, 2000
Peninsular & Oriental Steam Navigation Co. posted full-year profits ahead of expectations last week, and said the recently announced demerger of its cruises division would be completed in October. The results, which included an attempt to reassure investors that the company was not facing pricing pressures in its Princess cruise unit, initially pleased investors, perking up the shares six percent. But lingering concerns over possible discounting and worries that P&O is not hedged against rising fuel costs set in after analysts met company executives and the stock made a u-turn. The markets have been worried about price pressures in the cruise industry since bearish comments about the "wave period" -- the crucial two months of the year when some 65 percent of the year's capacity is sold -- by Princess' rival U.S.-based Carnival Corp. Chairman Lord Sterling said he thought reaction to the comments, which has buffetted both companies' shares, was exaggerated. He said P&O prices for Princess through to the summer period were in line with the high levels of last year. However, P&O did acknowledge that at this stage the final quarter of 2000 did not look as strong as last year for Princess and that it expected to sail 100 percent full at rates that are close to last year -- a statement which some analysts said could mean lower rates, and therefore revenues. "As an industry, the cruise business is trading extremely well and Princess is expanding capacity 23 percent. When you take account of that expansion, bookings are really going very well," Sterling said in an interview. "We're just putting out those caveats, we thought it was desirable to state it because everybody is asking. But frankly I'm amazed at the reaction that has taken place," he said. A rise in full-year pre-tax, pre-exceptional profit to 474.7 million pounds from 415.9 last year was ahead of P&O also gave further details about the nuts and bolts of the demerger of its cruise business -- the third largest cruise group in the world. The demerger, which was announced early last month, is aimed at allowing P&O's ongoing business to focus on running its ferries and ports. P&O said that while there was no need for new equity to be raised for either company, it may make a small placing of P&O Princess in the United States at the time of the demerger, "to raise the profile of the new company with U.S. investors". This would be within pre-emption limits, under five percent of issued shares, and would depend on market conditions.
Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ship Repair & Conversion

BAE Systems Awards Software Contract to SENER

The Spanish company SENER, Ingeniería y Sistemas S.A has closed a contract with U.K.-based BAE Systems PLC for the integration between FORAN CAD/CAM System and

Self-lubricating Bearing Polymer: Safe, Easy to Machine

Many plastics and metallic alloys present machining challenges as some deform and are difficult to maintain exacting tolerances, while others require strict and

Barcelona Yacht Repairer Adds New Shiplift

Yacht service, refit, repair and maintenance yard Marina Barcelona 92 (MB’92) has awarded a contract to Pearlson Shiplift Corporation (PSC) for the design and supply

Cruise Ship Trends

Carnival’s Costa Brand Orders Two LNG Cruise Ships

Costa’s two new cruise ships will be the largest ever built based on guest capacity; Costa will join sister brand AIDA Cruises in building the first-ever cruise

Pearl Seas Cruises Adds Voyages to Cuba

Pearl Seas Cruises plans to launch a series of “cultural voyages” from the United States to Cuba beginning in the spring of 2016, the cruise line announced today.

First Cruise Ship Docks at Teignmouth Port

History was made at ABP’s Port of Teignmouth with the visit of its first ever cruise ship. The Hebridean Princess, a luxury cruise ship, arrived from Dartmouth carrying 50 passengers.

 
 
Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Repair Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2768 sec (4 req/sec)